Been a hot topic - I've had the same issue in VA last year and expect the same this year - the only "fix" I'm aware of is to put this into your state taxes as a manual subtraction with explanation (there should be a screen for that).
Same topic recently for someone in NY:
https://ttlc.intuit.com/community/taxes/discussion/accrued-market-discount-on-new-york-tax/00/344188...
Larger thread thread on this topic:
https://ttlc.intuit.com/community/taxes/discussion/accrued-market-discount-on-trea[product key remov...
